A trade war is a conflict that arises when two countries impose tariffs and trade restrictions on each other. The impact of this trade war is very broad, affecting the global economy, international relations, and people’s purchasing power. One example is the trade war between the United States and China, which resulted in a major reshuffling of the world trade landscape. One of the direct impacts of a trade war is an increase in tariffs that hinder the flow of goods and services between countries. Tariff increases make imported goods more expensive, so consumers will reduce purchases. This impact is clearly visible in industries that are highly dependent on raw materials or components from countries subject to tariffs. For example, the automotive and electronics sectors feel a significant impact, because they require various components from various countries. Increased production costs due to tariffs can also trigger inflation. When the cost of imported goods rises, producers tend to pass on the increased costs to consumers. This creates inflationary pressures that can affect people’s purchasing power. In turn, decreasing purchasing power will affect economic growth, because consumers reduce their spending. Additionally, trade wars create uncertainty in global markets. This uncertainty may affect foreign investment. Investors tend to be careful in making investment decisions when they see risks from unstable government policies. As a result, the flow of foreign direct investment could be hampered, resulting in slower economic growth in the countries involved. Trade wars could also accelerate shifts in global supply chains. Companies may look for alternatives to reduce dependence on a single country affected by tariffs. For example, many companies are moving production locations from China to Southeast Asian countries such as Vietnam and Indonesia. This changes the dynamics of trade in the region, which can create new opportunities for these countries, but at the same time leave negative impacts for the countries of origin. The agricultural sector is also not immune from the impact of the trade war. For example, farmers in the US who depend on exports of agricultural products to China felt a significant impact when tariffs were imposed. The decline in demand from the Chinese market causes agricultural commodity prices to fall, harming local farmers and threatening food security. In the long term, trade wars can create political polarization. When certain sectors feel disadvantaged, they may pressure governments to take further action, creating a cycle of retaliation that can lead to greater harm for all parties. These tensions could worsen international relations and reduce cooperation on global issues, such as climate change and security. Taking all the above factors into account, it is clear that the impact of trade wars on the global economy is complex. From inflation and investment uncertainty to shifts in supply chains and impacts on the agricultural sector, trade wars add to the challenges for a world economy already facing a lot of stress. Companies and countries need to adapt their strategies to deal with these changes, in order to minimize the negative impacts arising from trade tensions.